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Question 20

1.

If the Debt/Equity Ratio is 0.50. What is the Debt Ratio?

Answer

0.50

0.375

0.60

1

o.3333

Question 21

If the Debt/Equity Ratio is 0.60. What is the Debt Ratio?

Answer

0.40

0.375

0.60

1

o.4444

Question 22

Toast and Butter, Inc., has total assets of $712,000 and an equity multiplier of 1.6. What is the debt-equity ratio?

Answer

0.60

0.67

0.63

1.60

1.67

Question 23

If Roten, Inc., has a equity multiplier of 1.75, total asset turnover of 1.30, and profit margin of 8.5 percent, what is the return on equity (ROE)?

Answer

19.34%

2.275%

1.75%

14.875%

Question 24

Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ratio of 2.6. What is Smith s acid test ratio? Assume pre-paid expenses is zero.

Answer

1.69

0.54

0.74

1.35

Question 25

If the Debt/Equity Ratio is 0.80. What is the Debt Ratio?

Answer

0.40

0.375

0.60

1

o.4444

Question 26

XYZ has total sales of $201, assets of $116, return on equity of 34%, and net profit margin of 5%. What is the amount of equity?

Enter you answer rounded off to two decimal points. Do not enter $ in the answer box.

Answer

Question 27

Top Sound, Inc., has total assets of $212,000, a debt-equity ratio of .6, and net income of $9,500. What is the return on equity?

Answer

6.87 percent

7.17 percent

7.34 percent

7.50 percent

7.67 percent

Question 28

ABC earned a net profit margin of 6.3% last year and had an equity multiplier of 2.8. If its total assets are $87 million and its sales are 189 million, what is the firm’s return on equity?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

Answer

Question 29

1.

A firm has total assets of $682,000 and total equity of $424,000. What is the debt-equity ratio?

Answer

1.61

0.61

1.64

0.62

Question 30

A firm has net working capital of $1,100 and current liabilities of $2,800. What is the current ratio?

Answer

.98

2.56

.39

.72

1.39

Question 31

Wexford Hotels has sales of $289,600, depreciation of $21,400, interest of $1,300, Operating Income of $23,269.70, and a tax rate of 34 percent. What is the times interest earned ratio?

Answer

20

17.9

18.5

16

19.8